• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"

U.S. Steel Stock Skyrockets After Declining Major Merger Proposal

United States Steel Corporation, one of the most iconic American steelmakers, rejected a takeover bid from rival Cleveland-Cliffs Inc. that would have formed one of the world's largest steelmakers.

On Sunday, US Steel announced the process to assess its alternatives after receiving multiple approaches for parts or all of the business. About three hours later, Cliffs went public with its cash and share bid, which values the company at about $7.25 billion based on closing prices on Friday, representing a 43% premium.

Cleveland-Cliffs said it submitted the proposal privately on July 28 and received a rejection letter on Sunday, calling it an "unreasonable proposal." 

US Steel shares are up 28% in premarket trading in New York, while Cleveland-Cliffs are flat. 

However, the US Steel board remains committed to maximizing shareholder value and "decided to initiate a formal review process to evaluate strategic alternatives." 

KeyBanc analyst Philip Gibbs called the Cleveland-Cliffs deal to acquire US Steel a "long shot." 

Bloomberg pointed out, "The bid comes at a time when producers including US Steel are predicting that domestic demand will benefit from green-energy infrastructure and manufacturing projects, bolstered by the Biden administration's Inflation Reduction Act." 

Cliffs Chief Executive Officer Lourenco Goncalves wrote in a statement: 

"Although we are now public, I do look forward to continuing to engage with US Steel on a potential transaction, as I am convinced that the value potential and competitiveness to come out of a combination of our two iconic American companies is exceptional." 

Should a deal be reached, it could free up US Steel's ticker symbol "X" for use.

ADVERTISEMENT

By Zerohedge.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News